8-K
Westamerica Bancorporation (WABC)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 8-K
_________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 20, 2023
_______________________________
WESTAMERICA BANCORPORATION
(Exact name of registrant as specified in its charter)
_______________________________
| California | 001-09383 | 94-2156203 |
|---|---|---|
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1108 Fifth Avenue
San Rafael, California 94901
(Address of Principal Executive Offices) (Zip Code)
(707) 863-6000
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
_______________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, no par value | WABC | The Nasdaq Stock Market, LLC |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition. On April 20, 2023, the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
Exhibit 99.1 Press release dated April 20, 2023
Exhibit 104 Cover Page Interactive Data File (embedded within the Inline XBRL document)
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| WESTAMERICA BANCORPORATION | ||
|---|---|---|
| Date: April 20, 2023 | By: | /s/ John "Robert" Thorson |
| John "Robert" Thorson | ||
| Senior Vice President and Chief Financial Officer |
EdgarFiling EXHIBIT 99.1
Westamerica Bancorporation Reports First Quarter 2023 Financial Results
SAN RAFAEL, Calif., April 20, 2023 (GLOBE NEWSWIRE) -- Westamerica Bancorporation (Nasdaq: WABC), parent company of Westamerica Bank, generated net income for the first quarter 2023 of $40.5 million and diluted earnings per common share ("EPS") of $1.51. First quarter 2023 results include a provision for credit losses reversal of $1.6 million, which increased EPS $0.04. These results compare to net income for fourth quarter 2022 of $39.3 million and EPS of $1.46.
"Westamerica’s first quarter 2023 results benefited from the Company’s valuable low-cost deposit base; the cost of funding our loan and bond portfolios was 0.03 percent in the first quarter 2023, unchanged from the prior quarter. Non-interest bearing deposits represented 47 percent of average deposits in the first quarter 2023 while higher-cost time deposits represented only 2 percent of average deposits. The first quarter 2023 also benefited from higher yields on variable-rate assets. Operating expenses were well controlled and credit quality remained stable with nonperforming assets of $785 thousand at March 31, 2023,” said Chairman, President and CEO David Payne. “First quarter 2023 results generated an annualized 19.1 percent return on average common equity. Shareholders were paid a $0.42 per common share dividend during the first quarter 2023,” concluded Payne.
Net interest income on a fully-taxable equivalent (FTE) basis was $69.6 million for the first quarter 2023, compared to $69.2 million for the fourth quarter 2022. The yield earned on loans, bonds and cash for the first quarter 2023 was 4.21 percent, up from 3.98 percent for the fourth quarter 2022. The cost of funding the loan and bond portfolios was 0.03 percent for both the first quarter 2023 and fourth quarter 2022.
The Company recognized a $1.6 million provision for credit losses reversal in the first quarter 2023 as a result of a $2.2 million recovery on a previously charged-off commercial loan.
Variable rate assets at March 31, 2023 included $1.5 billion in collateralized loan obligations for which interest rates reset quarterly.
Noninterest income for the first quarter 2023 totaled $10.5 million unchanged from the fourth quarter 2022.
Noninterest expenses for the first quarter 2023 were $26.2 million compared to $25.1 million for the fourth quarter 2022; the increase in noninterest expenses is primarily due to an increase in seasonal payroll taxes and increased FDIC insurance assessments for all insured depository institutions.
Westamerica Bancorporation’s wholly owned subsidiary Westamerica Bank, operates commercial banking and trust offices throughout Northern and Central California.
Westamerica Bancorporation Web Address: www.westamerica.com
For additional information contact:
Westamerica Bancorporation 1108 Fifth Avenue, San Rafael, CA 94901 Robert A. Thorson – SVP & Chief Financial Officer 707-863-6840 investments@westamerica.com
FORWARD-LOOKING INFORMATION:
The following appears in accordance with the Private Securities Litigation Reform Act of 1995:
This press release may contain forward-looking statements about the Company, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may."
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors — many of which are beyond the Company's control — could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. The Company's most recent reports filed with the Securities and Exchange Commission, including the annual report for the year ended December 31, 2022 filed on Form 10-K and quarterly report for the quarter ended September 30, 2022 filed on Form 10-Q, describe some of these factors, including certain credit, interest rate, operational, liquidity and market risks associated with the Company's business and operations. Other factors described in these reports include changes in business and economic conditions, competition, fiscal and monetary policies, disintermediation, cyber security risks, legislation including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the Sarbanes-Oxley Act of 2002 and the Gramm-Leach-Bliley Act of 1999, and mergers and acquisitions.
Forward-looking statements speak only as of the date they are made. The Company does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date forward looking statements are made.
| WESTAMERICA BANCORPORATION | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| FINANCIAL HIGHLIGHTS | ||||||||||
| March 31, 2023 | ||||||||||
| 1. Net Income Summary. | ||||||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Net Interest and Fee Income (FTE) | 69,562 | $ | 43,807 | 58.8 | % | |||||
| Reversal of Provision for Credit Losses (2) | (1,550 | ) | - | n/m | ||||||
| Noninterest Income (1) | 10,549 | 11,576 | -8.9 | % | ||||||
| Noninterest Expense | 26,210 | 24,875 | 5.4 | % | ||||||
| Income Before Taxes (FTE) | 55,451 | 30,508 | 81.8 | % | ||||||
| Income Tax Provision (FTE) | 15,000 | 7,892 | 90.1 | % | ||||||
| Net Income | 40,451 | $ | 22,616 | 78.9 | % | |||||
| Average Common Shares Outstanding | 26,859 | 26,870 | -0.0 | % | ||||||
| Diluted Average Common Shares Outstanding | 26,866 | 26,885 | -0.1 | % | ||||||
| Operating Ratios: | ||||||||||
| Basic Earnings Per Common Share | 1.51 | $ | 0.84 | 79.8 | % | |||||
| Diluted Earnings Per Common Share | 1.51 | 0.84 | 79.8 | % | ||||||
| Return On Assets (a) | 2.31 | % | 1.24 | % | % | |||||
| Return On Common Equity (a) | 19.1 | % | 11.8 | % | % | |||||
| Net Interest Margin (FTE) (a) | 4.18 | % | 2.51 | % | % | |||||
| Efficiency Ratio (FTE) | 32.7 | % | 44.9 | % | % | |||||
| Dividends Paid Per Common Share | 0.42 | $ | 0.42 | 0.0 | % | |||||
| Common Dividend Payout Ratio | 28 | % | 50 | % | % | |||||
| 2. Net Interest Income. | ||||||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Interest and Fee Income (FTE) | 70,033 | $ | 44,287 | 58.1 | % | |||||
| Interest Expense | 471 | 480 | -1.9 | % | ||||||
| Net Interest and Fee Income (FTE) | 69,562 | $ | 43,807 | 58.8 | % | |||||
| Average Earning Assets | 6,665,156 | $ | 6,998,234 | -4.8 | % | |||||
| Average Interest- Bearing Liabilities | 3,287,158 | 3,546,146 | -7.3 | % | ||||||
| Yield on Earning Assets (FTE) (a) | 4.21 | % | 2.54 | % | % | |||||
| Cost of Funds (a) | 0.03 | % | 0.03 | % | % | |||||
| Net Interest Margin (FTE) (a) | 4.18 | % | 2.51 | % | % | |||||
| Interest Expense/ | ||||||||||
| Interest-Bearing Liabilities (a) | 0.06 | % | 0.05 | % | % | |||||
| Net Interest Spread (FTE) (a) | 4.15 | % | 2.49 | % | % | |||||
| 3. Loans & Other Earning Assets. | ||||||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Total Assets | 7,112,317 | $ | 7,406,321 | -4.0 | % | |||||
| Total Earning Assets | 6,665,156 | 6,998,234 | -4.8 | % | ||||||
| Total Loans | 945,864 | 1,029,724 | -8.1 | % | ||||||
| Commercial Loans | 165,360 | 207,901 | -20.5 | % | ||||||
| Commercial Real Estate Loans | 493,132 | 524,040 | -5.9 | % | ||||||
| Consumer Loans | 287,372 | 297,783 | -3.5 | % | ||||||
| Total Investment Securities | 5,548,780 | 4,947,846 | 12.1 | % | ||||||
| Debt Securities Available for Sale | 4,636,098 | 4,655,983 | -0.4 | % | ||||||
| Debt Securities Held to Maturity | 912,682 | 291,863 | 212.7 | % | ||||||
| Total Interest-Bearing Cash | 170,512 | 1,020,664 | -83.3 | % | ||||||
| Loans/Deposits | 15.6 | % | 16.1 | % | % | |||||
| 4. Deposits, Other Interest-Bearing Liabilities & Equity. | ||||||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Total Deposits | 6,061,923 | $ | 6,393,458 | -5.2 | % | |||||
| Noninterest Demand | 2,851,600 | 3,005,065 | -5.1 | % | ||||||
| Interest-Bearing Transaction | 1,233,439 | 1,265,100 | -2.5 | % | ||||||
| Savings | 1,847,428 | 1,980,092 | -6.7 | % | ||||||
| Time greater than 100K | 57,630 | 64,172 | -10.2 | % | ||||||
| Time less than 100K | 71,826 | 79,029 | -9.1 | % | ||||||
| Total Short-Term Borrowings | 76,835 | 157,753 | -51.3 | % | ||||||
| Shareholders' Equity | 858,473 | 776,225 | 10.6 | % | ||||||
| Demand Deposits/ Total Deposits | 47.0 | % | 47.0 | % | % | |||||
| Transaction & Savings Deposits / Total Deposits | 97.9 | % | 97.8 | % | % | |||||
| 5. Interest Yields Earned & Rates Paid. | ||||||||||
| Income/ | Yield (a) / | |||||||||
| Expense | Rate (a) | |||||||||
| Interest & Fee Income Earned: | ||||||||||
| Total Earning Assets (FTE) | 6,665,156 | $ | 70,033 | 4.21 | % | |||||
| Total Loans (FTE) | 945,864 | 11,834 | 5.07 | % | ||||||
| Commercial Loans (FTE) | 165,360 | 2,760 | 6.77 | % | ||||||
| Commercial Real Estate Loans | 493,132 | 5,627 | 4.63 | % | ||||||
| Consumer Loans | 287,372 | 3,447 | 4.86 | % | ||||||
| Total Investments (FTE) | 5,548,780 | 56,257 | 4.06 | % | ||||||
| Total Debt Securities Available for Sale (FTE) | 4,636,098 | 47,114 | 4.06 | % | ||||||
| Corporate Securities | 2,350,403 | 16,446 | 2.80 | % | ||||||
| Collateralized Loan Obligations | 1,577,260 | 25,006 | 6.34 | % | ||||||
| Agency Mortgage Backed Securities | 304,863 | 1,865 | 2.45 | % | ||||||
| Securities of U.S. Government sponsored entities | 306,441 | 2,777 | 3.62 | % | ||||||
| Obligations of States and Political Subdivisions (FTE) | 83,914 | 637 | 3.04 | % | ||||||
| Other Debt Securities Available for Sale (FTE) | 13,217 | 383 | 11.59 | % | ||||||
| Total Debt Securities Held to Maturity (FTE) | 912,682 | 9,143 | 4.01 | % | ||||||
| Agency Mortgage Backed Securities | 101,911 | 547 | 2.15 | % | ||||||
| Corporate Securities | 722,452 | 7,815 | 4.33 | % | ||||||
| Obligations of States and Political Subdivisions (FTE) | 88,319 | 781 | 3.54 | % | ||||||
| Total Interest-Bearing Cash | 170,512 | 1,942 | 4.56 | % | ||||||
| Interest Expense Paid: | ||||||||||
| Total Earning Assets | 6,665,156 | 471 | 0.03 | % | ||||||
| Total Interest-Bearing Liabilities | 3,287,158 | 471 | 0.06 | % | ||||||
| Total Interest-Bearing Deposits | 3,210,323 | 458 | 0.06 | % | ||||||
| Interest-Bearing Transaction | 1,233,439 | 94 | 0.03 | % | ||||||
| Savings | 1,847,428 | 280 | 0.06 | % | ||||||
| Time less than 100K | 71,826 | 50 | 0.28 | % | ||||||
| Time greater than 100K | 57,630 | 34 | 0.24 | % | ||||||
| Total Short-Term Borrowings | 76,835 | 13 | 0.07 | % | ||||||
| Net Interest Income and | ||||||||||
| Margin (FTE) | $ | 69,562 | 4.18 | % | ||||||
| Income/ | Yield (a) / | |||||||||
| Expense | Rate (a) | |||||||||
| Interest & Fee Income Earned: | ||||||||||
| Total Earning Assets (FTE) | 6,998,234 | $ | 44,287 | 2.54 | % | |||||
| Total Loans (FTE) | 1,029,724 | 13,038 | 5.14 | % | ||||||
| Commercial Loans (FTE) | 207,901 | 2,843 | 5.55 | % | ||||||
| Commercial Real Estate Loans | 524,040 | 6,731 | 5.21 | % | ||||||
| Consumer Loans | 297,783 | 3,464 | 4.72 | % | ||||||
| Total Investments (FTE) | 4,947,846 | 30,770 | 2.49 | % | ||||||
| Total Debt Securities Available for Sale (FTE) | 4,655,983 | 28,862 | 2.48 | % | ||||||
| Corporate Securities | 2,701,476 | 18,488 | 2.74 | % | ||||||
| Collateralized Loan Obligations | 1,464,266 | 7,045 | 1.92 | % | ||||||
| Agency Mortgage Backed Securities | 385,900 | 2,256 | 2.34 | % | ||||||
| Obligations of States and Political Subdivisions (FTE) | 89,998 | 694 | 3.08 | % | ||||||
| Other Debt Securities Available for Sale (FTE) | 14,343 | 379 | 10.56 | % | ||||||
| Total Debt Securities Held to Maturity (FTE) | 291,863 | 1,908 | 2.61 | % | ||||||
| Agency Mortgage Backed Securities | 141,733 | 646 | 1.82 | % | ||||||
| Obligations of States and Political Subdivisions (FTE) | 150,130 | 1,262 | 3.36 | % | ||||||
| Total Interest-Bearing Cash | 1,020,664 | 479 | 0.19 | % | ||||||
| Interest Expense Paid: | ||||||||||
| Total Earning Assets | 6,998,234 | 480 | 0.03 | % | ||||||
| Total Interest-Bearing Liabilities | 3,546,146 | 480 | 0.05 | % | ||||||
| Total Interest-Bearing Deposits | 3,388,393 | 452 | 0.05 | % | ||||||
| Interest-Bearing Transaction | 1,265,100 | 88 | 0.03 | % | ||||||
| Savings | 1,980,092 | 283 | 0.06 | % | ||||||
| Time less than 100K | 79,029 | 40 | 0.21 | % | ||||||
| Time greater than 100K | 64,172 | 41 | 0.26 | % | ||||||
| Total Short-Term Borrowings | 157,753 | 28 | 0.07 | % | ||||||
| Net Interest Income and | ||||||||||
| Margin (FTE) | $ | 43,807 | 2.51 | % | ||||||
| 6. Noninterest Income. | ||||||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Service Charges on Deposit Accounts | 3,465 | $ | 3,582 | -3.3 | % | |||||
| Merchant Processing Services | 2,637 | 2,623 | 0.5 | % | ||||||
| Debit Card Fees (1) | 1,642 | 2,872 | -42.8 | % | ||||||
| Trust Fees | 765 | 843 | -9.3 | % | ||||||
| ATM Processing Fees | 654 | 451 | 45.0 | % | ||||||
| Other Service Fees | 399 | 449 | -11.2 | % | ||||||
| Financial Services Commissions | 89 | 117 | -23.9 | % | ||||||
| Other Noninterest Income | 898 | 639 | 40.5 | % | ||||||
| Total Noninterest Income | 10,549 | $ | 11,576 | -8.9 | % | |||||
| Operating Ratios: | ||||||||||
| Total Revenue (FTE) | 80,111 | $ | 55,383 | 44.6 | % | |||||
| Noninterest Income/Revenue (FTE) | 13.2 | % | 20.9 | % | % | |||||
| Service Charges/Avg. Deposits (a) | 0.23 | % | 0.23 | % | % | |||||
| Total Revenue (FTE) Per Avg. | ||||||||||
| Common Share (a) | 12.10 | $ | 8.36 | 44.8 | % | |||||
| 7. Noninterest Expense. | ||||||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Salaries & Benefits | 12,067 | $ | 11,920 | 1.2 | % | |||||
| Occupancy and Equipment | 5,485 | 4,746 | 15.6 | % | ||||||
| Outsourced Data Processing | 2,444 | 2,437 | 0.3 | % | ||||||
| Limited Partnership Operating Losses | 1,434 | 1,431 | 0.2 | % | ||||||
| Professional Fees | 476 | 736 | -35.3 | % | ||||||
| Courier Service | 615 | 582 | 5.7 | % | ||||||
| Other Noninterest Expense | 3,689 | 3,023 | 22.0 | % | ||||||
| Total Noninterest Expense | 26,210 | $ | 24,875 | 5.4 | % | |||||
| Operating Ratios: | ||||||||||
| Noninterest Expense/ Avg. Earning Assets (a) | 1.59 | % | 1.44 | % | % | |||||
| Noninterest Expense/Revenues (FTE) | 32.7 | % | 44.9 | % | % | |||||
| 8. Allowance for Credit Losses. | ||||||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Average Total Loans | 945,864 | $ | 1,029,724 | -8.1 | % | |||||
| Beginning of Period Allowance for | ||||||||||
| Credit Losses on Loans (ACLL) | 20,284 | $ | 23,514 | -13.7 | % | |||||
| (Reversal of) Provision for Credit Losses (2) | (1,550 | ) | - | n/m | ||||||
| Net ACLL Recoveries (Losses) | 775 | (589 | ) | n/m | ) | |||||
| End of Period ACLL | 19,509 | $ | 22,925 | -14.9 | % | |||||
| Gross ACLL Recoveries / Gross ACLL Losses | 138 | % | 51 | % | % | |||||
| Net ACLL (Recoveries) Losses / | ||||||||||
| Avg. Total Loans (a) | -0.33 | % | 0.23 | % | % | |||||
| % | ||||||||||
| 3/31/22 | Change | 12/31/22 | ||||||||
| Allowance for Credit Losses on Loans | 19,509 | $ | 22,925 | -14.9 | % | |||||
| Allowance for Credit Losses on | ||||||||||
| Held to Maturity Securities | 1 | 7 | -85.5 | % | ||||||
| Total Allowance for Credit Losses | 19,510 | $ | 22,932 | -14.9 | % | |||||
| Allowance for Unfunded | ||||||||||
| Credit Commitments | 201 | $ | 201 | 0.0 | % | |||||
| 9. Credit Quality. | ||||||||||
| % | ||||||||||
| 3/31/22 | Change | 12/31/22 | ||||||||
| Nonperforming Loans: | ||||||||||
| Nonperforming Nonaccrual Loans | 207 | $ | 63 | 228.6 | % | |||||
| Performing Nonaccrual Loans | 7 | 421 | n/m | |||||||
| Total Nonaccrual Loans | 214 | 484 | -55.8 | % | ||||||
| 90+ Days Past Due Accruing Loans | 571 | 431 | 32.5 | % | ||||||
| Total Nonperforming Loans | 785 | $ | 915 | -14.2 | % | |||||
| Total Loans Outstanding | 938,628 | $ | 1,002,514 | -6.4 | % | |||||
| Total Assets | 6,700,471 | 7,306,417 | -8.3 | % | ||||||
| Loans: | ||||||||||
| Allowance for Credit Losses on Loans | 19,509 | $ | 22,925 | -14.9 | % | |||||
| Allowance for Credit Losses on Loans / Loans | 2.08 | % | 2.29 | % | % | |||||
| Nonperforming Loans/Total Loans | 0.08 | % | 0.09 | % | % | |||||
| 10. Liquidity. | ||||||||||
| At March 31, 2023, the Company had 195,202 thousand in cash balances. During the twelve months ending March 31, 2024, the Company expects to receive 337,000 thousand in principal payments from its debt securities. If additional operational liquidity is required, the Company can pledge debt securities as collateral for borrowing purposes; at March 31, 2023, the Company’s debt securities which qualify as collateral for borrowing totaled 4,107,153 thousand. In the ordinary course of business, the Company pledges debt securities as collateral for certain depository customers; at March 31, 2023, the Company had pledged 686,533 thousand in debt securities for depository customers. In the ordinary course of business, the Company pledges debt securities as collateral for borrowing from the Federal Reserve Bank; at March 31, 2023, the Company’s had pledged 670,649 thousand in debt securities at the Federal Reserve Bank. During the three months ended March 31, 2023, the Company’s average borrowings from the Federal Reserve Bank and other correspondent banks were 1 thousand, and at March 31, 2023, the Company’s borrowings from the Federal Reserve Bank and other correspondent banks were -0- thousand. At March 31, 2023, the Company’s unpledged collateral qualifying debt securities totaled 2,574,254 thousand. The following schedule is shown in market value unless otherwise noted. | ||||||||||
| (in thousands) | ||||||||||
| 3/31/23 | ||||||||||
| Debt Securities Eligible as Collateral: | ||||||||||
| Corporate Securities | 2,715,376 | |||||||||
| Collateralized Loan Obligations rated AAA | ||||||||||
| Obligations of States and Political Subdivisions | ||||||||||
| Agency Mortgage Backed Securities | ||||||||||
| Securities of U.S. Government Sponsored Entities (Par Value) | ||||||||||
| Total Debt Securities Eligible as Collateral | 4,107,153 | |||||||||
| Debt Securities Pledged as Collateral: | ||||||||||
| Public funds | (686,533 | ) | ||||||||
| Short-term borrowed funds (Deposit Sweep) | ) | |||||||||
| Other | ) | |||||||||
| Total Debt Securities Pledged as Collateral | (862,250 | ) | ||||||||
| Debt Securities Pledged at the Federal Reserve Bank | (670,649 | ) | ||||||||
| Debt Securities Available to Pledge | 2,574,254 | |||||||||
| 11. Capital. | ||||||||||
| % | ||||||||||
| 3/31/22 | Change | 12/31/22 | ||||||||
| Shareholders' Equity | 642,925 | $ | 701,744 | -8.4 | % | |||||
| Total Assets | 6,700,471 | 7,306,417 | -8.3 | % | ||||||
| Shareholders' Equity/ | ||||||||||
| Total Assets | 9.60 | % | 9.60 | % | % | |||||
| Shareholders' Equity/ | ||||||||||
| Total Loans | 68.50 | % | 70.00 | % | % | |||||
| Tangible Common Equity Ratio | 7.92 | % | 8.06 | % | % | |||||
| Common Shares Outstanding | 26,648 | 26,883 | -0.9 | % | ||||||
| Common Equity Per Share | 24.13 | $ | 26.10 | -7.6 | % | |||||
| Market Value Per Common Share | 44.30 | 60.50 | -26.8 | % | ||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Share Repurchase Programs: | ||||||||||
| Total Shares Repurchased / Canceled | 274 | 3 | n/m | |||||||
| Average Repurchase Price | 50.11 | $ | 58.66 | n/m | ||||||
| Net Shares Repurchased (Issued) | 265 | (17 | ) | n/m | ) | |||||
| 12. Period-End Balance Sheets. | ||||||||||
| % | ||||||||||
| 3/31/22 | Change | 12/31/22 | ||||||||
| Assets: | ||||||||||
| Cash and Due from Banks | 195,202 | $ | 1,037,593 | -81.2 | % | |||||
| Debt Securities Available for Sale | ||||||||||
| Corporate Securities | 2,019,240 | 2,547,118 | -20.7 | % | ||||||
| Collateralized Loan Obligations | 1,542,377 | 1,616,584 | -4.6 | % | ||||||
| Agency Mortgage Backed Securities | 276,078 | 363,181 | -24.0 | % | ||||||
| Securities of U.S. Government sponsored entities | 297,140 | - | n/m | |||||||
| Obligations of States and Political Subdivisions | 82,678 | 89,595 | -7.7 | % | ||||||
| Other Debt Securities Available for Sale | - | 110 | n/m | |||||||
| Total Debt Securities Available for Sale | 4,217,513 | 4,616,588 | -8.6 | % | ||||||
| Debt Securities Held to Maturity | ||||||||||
| Agency Mortgage Backed Securities | 98,006 | 133,754 | -26.7 | % | ||||||
| Corporate Securities | 723,553 | - | n/m | |||||||
| Obligations of States and Political Subdivisions (3) | 87,760 | 146,766 | -40.2 | % | ||||||
| Total Debt Securities Held to Maturity (3) | 909,319 | 280,520 | 224.2 | % | ||||||
| Loans | 938,628 | 1,002,514 | -6.4 | % | ||||||
| Allowance For Credit Losses on Loans | (19,509 | ) | (22,925 | ) | -14.9 | % | ) | |||
| Total Loans, net | 919,119 | 979,589 | -6.2 | % | ||||||
| Premises and Equipment, net | 28,331 | 30,626 | -7.5 | % | ||||||
| Identifiable Intangibles, net | 523 | 771 | -32.1 | % | ||||||
| Goodwill | 121,673 | 121,673 | 0.0 | % | ||||||
| Other Assets | 308,791 | 239,057 | 29.2 | % | ||||||
| Total Assets | 6,700,471 | $ | 7,306,417 | -8.3 | % | |||||
| Liabilities and Shareholders' Equity: | ||||||||||
| Deposits: | ||||||||||
| Noninterest-Bearing | 2,788,992 | $ | 3,000,268 | -7.0 | % | |||||
| Interest-Bearing Transaction | 1,201,356 | 1,279,165 | -6.1 | % | ||||||
| Savings | 1,783,667 | 1,984,719 | -10.1 | % | ||||||
| Time | 125,300 | 141,722 | -11.6 | % | ||||||
| Total Deposits | 5,899,315 | 6,405,874 | -7.9 | % | ||||||
| Short-Term Borrowed Funds | 83,088 | 124,442 | -33.2 | % | ||||||
| Other Liabilities | 75,143 | 74,357 | 1.1 | % | ||||||
| Total Liabilities | 6,057,546 | 6,604,673 | -8.3 | % | ||||||
| Shareholders' Equity: | ||||||||||
| Common Equity: | ||||||||||
| Paid-In Capital | 471,159 | 472,470 | -0.3 | % | ||||||
| Accumulated Other | ||||||||||
| Comprehensive Loss | (231,573 | ) | (88,300 | ) | n/m | ) | ||||
| Retained Earnings | 403,339 | 317,574 | 27.0 | % | ||||||
| Total Shareholders' Equity | 642,925 | 701,744 | -8.4 | % | ||||||
| Total Liabilities and | ||||||||||
| Shareholders' Equity | 6,700,471 | $ | 7,306,417 | -8.3 | % | |||||
| 13. Income Statements. | ||||||||||
| % | ||||||||||
| Q1'2022 | Change | Q4'2022 | ||||||||
| Interest & Fee Income: | ||||||||||
| Loans | 11,740 | $ | 12,942 | -9.3 | % | |||||
| Equity Securities | 152 | 128 | 18.8 | % | ||||||
| Debt Securities Available for Sale | 46,810 | 28,566 | 63.9 | % | ||||||
| Debt Securities Held to Maturity | 8,980 | 1,644 | 446.2 | % | ||||||
| Interest-Bearing Cash | 1,942 | 479 | 305.4 | % | ||||||
| Total Interest & Fee Income | 69,624 | 43,759 | 59.1 | % | ||||||
| Interest Expense: | ||||||||||
| Transaction Deposits | 94 | 88 | 6.8 | % | ||||||
| Savings Deposits | 280 | 283 | -1.1 | % | ||||||
| Time Deposits | 84 | 81 | 3.7 | % | ||||||
| Short-Term Borrowed Funds | 13 | 28 | -53.6 | % | ||||||
| Total Interest Expense | 471 | 480 | -1.9 | % | ||||||
| Net Interest Income | 69,153 | 43,279 | 59.8 | % | ||||||
| Reversal of Provision for Credit Losses (2) | (1,550 | ) | - | n/m | ||||||
| Noninterest Income: | ||||||||||
| Service Charges on Deposit Accounts | 3,465 | 3,582 | -3.3 | % | ||||||
| Merchant Processing Services | 2,637 | 2,623 | 0.5 | % | ||||||
| Debit Card Fees (1) | 1,642 | 2,872 | -42.8 | % | ||||||
| Trust Fees | 765 | 843 | -9.3 | % | ||||||
| ATM Processing Fees | 654 | 451 | 45.0 | % | ||||||
| Other Service Fees | 399 | 449 | -11.2 | % | ||||||
| Financial Services Commissions | 89 | 117 | -23.9 | % | ||||||
| Other Noninterest Income | 898 | 639 | 40.5 | % | ||||||
| Total Noninterest Income | 10,549 | 11,576 | -8.9 | % | ||||||
| Noninterest Expense: | ||||||||||
| Salaries and Related Benefits | 12,067 | 11,920 | 1.2 | % | ||||||
| Occupancy and Equipment | 5,485 | 4,746 | 15.6 | % | ||||||
| Outsourced Data Processing | 2,444 | 2,437 | 0.3 | % | ||||||
| Limited Partnership Operating Losses | 1,434 | 1,431 | 0.2 | % | ||||||
| Professional Fees | 476 | 736 | -35.3 | % | ||||||
| Courier Service | 615 | 582 | 5.7 | % | ||||||
| Other Noninterest Expense | 3,689 | 3,023 | 22.0 | % | ||||||
| Total Noninterest Expense | 26,210 | 24,875 | 5.4 | % | ||||||
| Income Before Income Taxes | 55,042 | 29,980 | 83.6 | % | ||||||
| Income Tax Provision | 14,591 | 7,364 | 98.1 | % | ||||||
| Net Income | 40,451 | $ | 22,616 | 78.9 | % | |||||
| Average Common Shares Outstanding | 26,859 | 26,870 | -0.0 | % | ||||||
| Diluted Average Common Shares Outstanding | 26,866 | 26,885 | -0.1 | % | ||||||
| Per Common Share Data: | ||||||||||
| Basic Earnings | 1.51 | $ | 0.84 | 79.8 | % | |||||
| Diluted Earnings | 1.51 | 0.84 | 79.8 | % | ||||||
| Dividends Paid | 0.42 | 0.42 | 0.0 | % | ||||||
| Footnotes and Abbreviations: | ||||||||||
| (1) The Company received a 1.2 million reconciling payment from a payments network in the first quarter 2022. | ||||||||||
| (2) A recovery of a previously charged off loan in the first quarter 2023 resulted in a 1,550 thousand reversal of the allowance for credit loss provision in the first quarter 2023. | ||||||||||
| (3) Debt Securities Held To Maturity and Obligations of States and Political Subdivisions are net of related reserve for expected credit losses of 1 thousand at March 31, 2023, December 31, 2022 and 7 thousand at March 31, 2022. | ||||||||||
| (FTE) Fully Taxable Equivalent. The Company presents its net interest margin and net interest income on a FTE basis using the current statutory federal tax rate. Management believes the FTE basis is valuable to the reader because the Company’s loan and investment securities portfolios contain a portion of municipal loans and securities that are federally tax exempt. The Company’s tax exempt loans and securities composition may not be similar to that of other banks, therefore in order to reflect the impact of the federally tax exempt loans and securities on the net interest margin and net interest income for comparability with other banks, the Company presents its net interest margin and net interest income on a FTE basis. | ||||||||||
| (a) Annualized |
All values are in US Dollars.